Definitive Healthcare Corp. Revenue Disclosure
The Company disaggregates revenue from its arrangements with customers by type of service as it believes these categories best depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
The following table represents a disaggregation of revenue from arrangements with customers for the years ended December 31, 2025, 2024, and 2023.
|
|
Year Ended December 31, |
|
|||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Subscription services |
|
$ |
232,225 |
|
|
$ |
244,886 |
|
|
$ |
243,052 |
|
Professional services |
|
|
9,296 |
|
|
|
7,316 |
|
|
|
8,363 |
|
Total revenue |
|
$ |
241,521 |
|
|
$ |
252,202 |
|
|
$ |
251,415 |
|
Deferred Contract Costs
A summary of the activity impacting the deferred contract costs during the years ended December 31, 2025 and 2024 is presented below:
(in thousands) |
|
December 31, |
|
|
December 31, |
|
||
Balance at beginning of year |
|
$ |
28,125 |
|
|
$ |
30,810 |
|
Costs amortized |
|
|
(15,871 |
) |
|
|
(15,441 |
) |
Additional amounts deferred |
|
|
13,352 |
|
|
|
12,756 |
|
Balance at end of year |
|
|
25,606 |
|
|
|
28,125 |
|
Classified as: |
|
|
|
|
|
|
||
Current |
|
|
12,766 |
|
|
|
13,736 |
|
Non-current |
|
|
12,840 |
|
|
|
14,389 |
|
Total deferred contract costs (deferred commissions) |
|
$ |
25,606 |
|
|
$ |
28,125 |
|
Contract Liabilities
A summary of the activity impacting deferred revenue balances during the years ended December 31, 2025 and 2024
is presented below as of:
(in thousands) |
|
December 31, |
|
|
December 31, |
|
||
Balance at beginning of year |
|
$ |
93,376 |
|
|
$ |
97,386 |
|
Revenue recognized |
|
|
(241,521 |
) |
|
|
(252,202 |
) |
Additional amounts deferred |
|
|
247,517 |
|
|
|
248,192 |
|
Balance at end of year |
|
$ |
99,372 |
|
|
$ |
93,376 |
|
Remaining Performance Obligations
Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be invoiced and recognized as revenue in future periods. Transaction price allocated to remaining performance obligations is influenced by several factors, including seasonality, the timing of renewals, and disparate contract terms. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and backlog. The Company’s backlog represents installment billings for periods beyond the current billing cycle. The majority of the Company’s noncurrent remaining performance obligations will be recognized in the next 13 to 36 months.
The remaining performance obligations consisted of the following as of:
(in thousands) |
|
December 31, |
|
|
December 31, |
|
||
Current |
|
$ |
165,087 |
|
|
$ |
188,050 |
|
Non-current |
|
|
75,368 |
|
|
|
105,673 |
|
Total |
|
$ |
240,455 |
|
|
$ |
293,723 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 15, 2022 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.